Targeting China’s Belt and Road... Biden Pledges 72 Trillion Won Investment in Africa (Summary)

"Afrikae Ollin" Blocking Influence from China

[Image source=UPI Yonhap News]

[Asia Economy Reporter Yujin Cho] U.S. President Joe Biden announced a massive investment plan of 72 trillion won in African countries. He also made remarks indirectly criticizing China’s Belt and Road Initiative, which is burdening African countries with a debt bomb. Following efforts in the Indo-Pacific region and the Ukraine war, the U.S. has now officially launched diplomacy to block China’s influence in Africa.

On the 15th (local time), President Biden officially announced at the African Union (AU) Agenda 2063 session of the ‘U.S.-Africa Leaders Summit’ held in Washington DC, "We will provide $5.5 billion (approximately 72 trillion won) over the next three years in close cooperation with the U.S. Congress to advance issues of common priority."

He said, "This is a comprehensive U.S. commitment to invest in African people, infrastructure, agriculture, health, and security," adding, "We want to enhance cooperation in all areas from rural communities to urban centers, and from cyberspace to outer space."

He emphasized, continuing from the previous day, "The United States is all-in, and all-in again on the African continent."

Agenda 2063 of the African Union, first announced in 2013 and officially adopted in 2015, contains a blueprint to make the African continent a global powerhouse group over 50 years through economic development, political integration, promotion of democracy, and strengthening security.

BBC reported that this summit appears to be an attempt to block China’s intervention aimed at expanding its influence in Africa through the Belt and Road Initiative.

Former President Donald Trump, as part of his so-called hamburger diplomacy, never visited the African continent, arguing that countries not beneficial to U.S. national interests should be sidelined, and he did not hesitate to make insulting remarks about African countries.

BBC analyzed that Biden’s efforts to restore influence in Africa, which had waned during Trump’s administration, fundamentally contain a check on China.

President Biden stated, "In addition to U.S. investment, we will help African countries secure the funding needed to create sustainable and inclusive growth," and "We will request authority from the U.S. Congress to lend $2.1 billion to the International Monetary Fund (IMF) for financing low- and middle-income countries."

He said, "We will lead efforts to pursue fair agreements with global creditors to provide debt relief," adding, "So that countries can prioritize their citizens instead of being burdened by back-breaking debt."

This statement implies that African countries are unable to properly invest domestically due to excessive debt burdens and is interpreted as an indirect criticism of China’s Belt and Road Initiative.

China has been criticized for trapping participating countries in debt through its massive economic zone plan connecting the Eurasian continent, the Belt and Road Initiative. It pursues a diplomatic policy that makes countries dependent on China by providing loans for infrastructure projects in Africa and elsewhere.

According to World Bank statistics, Chinese debt accounts for 40% of the external debt of the poorest countries, including those in Africa.

President Biden also promised a seat for the African continent on the international stage where global challenges are discussed, reaffirming support for including African countries in the United Nations Security Council reform and for the African Union’s major 20 countries (G20) membership.

He pledged that next year he, along with the Vice President and the Secretaries of State, Defense, Treasury, and Commerce, will visit Africa. However, he did not announce specific schedules or target countries. If President Biden tours the African continent, it will be the first time since the Obama administration.

The Africa Leaders Summit, held in Washington DC from the 13th with the participation of leaders from 49 African countries and AU delegations, concluded on this day. This meeting was held for the first time in eight years since it was first convened in 2014 when Biden was Vice President.

Regarding the invitation of leaders from countries criticized for human rights issues, President Biden said, "Support for democracy, respect for the rule of law, commitment to human rights, and responsible governance are part of our DNA," adding, "The United States will lead with these values when engaging with African countries," thereby preempting controversy.

This content was produced with the assistance of AI translation services.